Viewing blog posts written by Gino DiCaro


Cal Tax says: "Let's encourage manufacturing in CA"

Posted by Gino DiCaro, VP, Communications on April 30, 2017

Last week, as the Legislature heard two bills to extend and improve a California sales tax exemption on manufacturing equipment purchases, the California Taxpayers Association (Cal Tax) president wrote a great piece for the OC Register on the importance of encouraging manufacturing investment in California. Most states either don't tax the purchases in the first place or provide some level of exemption. If the state's exemption was allowed to sunset, it would create a competitive disadvantage in California's ability to attract investment for the high wage sector.  Cal Tax analyzed the state's current temporary exemption and found that every $1 dollar of incentive claimed has created $23 in return investment.  Cal Tax's piece below. Share it around where you can.

Let's encourage manufacturing in California 

by Teresa Casazza -- President, Cal Tax
(ran in OC Register April 27, 2017)

While discussing California’s loss of manufacturing jobs, a colleague once quipped that at the rate we’re going, the only factory jobs left in this state will be at The Cheesecake Factory.

We haven’t gotten to that point yet, but it is true that the Golden State has been losing manufacturing jobs to other states and countries, in large part because of the high cost of doing business in California.

Even native California companies are moving operations to other states. The latest is Aerojet Rocketdyne, the pioneering aerospace company that is eliminating 1,100 jobs in Sacramento and creating 800 jobs in Alabama. You don’t have to be one of Aerojet’s rocket scientists to know that California needs to improve its jobs climate.

In 2013, the Legislature and governor approved an economic development plan to attract and retain high-paying manufacturing and research-and-development jobs. This legislation has been good for our economy, and has the potential to be great with a few adjustments — tweaks included in twin bills, Assembly Bill 600 and Senate Bill 600, by Assemblyman Jim Cooper and Sen. Cathleen Galgiani, respectively... READ MORE ON OC REGISTER





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CA work comp rates lower in 2016 but more expensive than the national average

Posted by Gino DiCaro, VP, Communications on Jan. 6, 2017

Unfortunately for California manufacturers, our state continues to be the most expensive state for workers’ compensation insurance rates at an average $3.24 per $100 in payroll.  While rates are trending downward according to the Oregon Workers' Compensation Premium Rate Ranking Summary, California's decline is not occurring quick enough or deep enough to level the playing field, despite the reforms in 2012.

Here's a look at the prmeimus by state with California's trend vs. the national average.

 

 

Link to Oregon Workers' Compensation Premium Rate Ranking Summary

 

 





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Support for Free trade and TPP more critical than ever

Posted by Gino DiCaro, VP, Communications on July 21, 2016

The National Association of Manufacturers' Linda Dempsey wrote a compelling blog after the first day of the Republican Convention on the RNC's omission of support for free trade in its platform. With this development it's even more important now for manufacturers to continue to support the Trans-Pacific Partnership and free trade agreements. Intro and link to Dempsey's blog below:

The Economic vs. Political Timetable and Agenda for Trade: What the Republican Platform Misses

There’s lots of news from the first day of the convention, but manufacturers are more concerned with a major omission by the Republican Party: a statement supporting the Trans-Pacific Partnership (TPP). That’s one line worth repeating.

Manufacturers in the United States were happy to post production increases in June, but according to the NAM’s Chief Economist, Chad Moutray, “manufacturing activity remains quite challenged.”  Weak export numbers have contributed to these challenges as global demand remains underwhelming and competition from overseas continues to increase. Indeed, U.S. manufacturing exports are down $31 million in the first quarter of 2016 compared to two years ago ... READ MORE

 

NAM CHART





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New manufacturing sustainability blog

Posted by Gino DiCaro, VP, Communications on July 1, 2016

The National Association of Manufacturers (NAM) launched a new blog series this week, titled “Manufacturing a Sustainable Future" in an effort to show how technical innovations in manufacturing are improving our sustainability dramatically. Manufacturing growth and sustainability must co-exist and everyone should be aware of the trailblazing and voluntary efforts being made within the industry. 

California manufacturers lead the way in innovation, efficiency, and sustainability so we could not be more pleased with the focus on these initiatives.

In their inaugural post, CMTA member General Motors' Global Waste Reduction Manager John Bradburn highlights GM’s 131 landfill-free facilities and goal to achieve zero waste at all global plants. Through innovation and a commitment to sustainability, GM has turned waste into a resource in its manufacturing process.

We encourage you to share your story with NAM and/or CMTA so we can make sure manufacturing is seen as a large part of our sustainablitiy solutions.





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CA industrial electricity now 79% more expensive than the U.S. average

Posted by Gino DiCaro, VP, Communications on June 14, 2016

California manufacturers depend on cost-competitive electricity rates to stay in business and grow their operations. Since 2010 California's energy policies have steadily driven up industry's premium to purchase electricity in the state.  The annual average in 2010 for the "industrial" rate was 44 percent higher than the national average, growing to a whopping 79 percent higher in 2015. The "commercial" rate that smaller manufacturers tend to pay has also steadily increased.  That rate was 49 percent higher than the national average in 2015.

Coupled with data that shows California has attracted no more than two percent of U.S. manufacturing investments since 2010, this information tells us that we must make sure our energy policies take into account their impacts on high-wage manufacturing growth.





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